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This briefing session discusses policy decisions related to governance, administration, financing, rates, and programs for East Bay Community Energy. The session aims to provide background information, facilitate detailed discussions, and make key policy decisions needed for the implementation plan.
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East Bay Community EnergyBoard Briefing on Policy Issues – Session #1DRAFTJune 7, 2017 Presented by: Gary Saleba, President/CEO Ryan Ramos, President EES Consulting, Inc. RS2 Energy 425-889-2700 510-306-4772 saleba@eesconsulting.comrramos@rs2energy.com
Agenda • Introductions and Session Objectives • Background on Policy Decisions • Detailed Discussion • Governance • Administrative • Finance • Rates/Programs • Preview of Issue at Next Session (June 21??) • Wrap-Up • Questions/Answers
Introductions • Session Objectives Introductions and Session Objectives
Background on Policy Decision • Schedule for Launch by 1Q 2018 is Tight • Critical Path Issue is Getting Data Management/Billings Aligned with PG&E • In Order to Get Data Alignment Started, Must Have: • Data management vendor hired • PG&E administrative paperwork completed • EBCE Implementation Plan certified by California Public Utilities Commission – file mid July, 2017 • Proposed Policy Decision Making Process • Session #1 – Governance, Administrative, Financing, Rates, Programs • Session #2 – Load Forecast, Power Supply, Phase-In Schedule, Power Supply Portfolio Options • Session #3 – Risk Management, Financial Reserves, Power Supply Risk Management Parameters
Policy Decisions Needed for Implementation Plan (Session 1) • Introduction • Initial policy decisions directed at getting the Implementation Plan (IP) filed • All decisions can be adjusted later as circumstances/policy changes • Course correction common in dynamic market • Some issues easy and will just raise briefly • Others will require discussion
EBCE Decision Schedule • Org Structure • Rate Design • Programs • Select Power Supply Vendor Key Board Decisions: • Decide power product offerings and power sourcing strategy • Select Financing Partner
Policy Decisions Needed for Implementation Plan (Session 1) (cont’d) • Governance – (Completed) • Statement of intent from JPA agreement • Secure electrical energy supply and rate stability for customers • Address climate change by reducing GHG emissions • Foster local economic benefits: job creation, local energy programs • Termination of JPA (completed) • JPA agreement may be terminated by mutual agreement of all Parties • Surplus assets in possession of the Authority shall be returned to the then-existing Parties in proportion to the contributions made by each once all liabilities, costs, expenses, and charges incurred are paid.
Administrative/Finance • Financing • Short-term start out • County loan • Longer-term/roll out • RFP for financial advisor • RFP for loan • RFP for line of credit, deferred payment plans • Select least costly option
Rates • Structural Options • PG&E rate with % discount • Pros • Easy to design, explain and verify discount • All operating CCAs follow the incumbent IOU’s rate structure • Cons • Does not match cost causation • Possible revenue instability issues with DER/DSM/EE • Cost based rates – perform cost of service analysis and follow • Pros • Matches cost causation • Stabilize revenues • User pays/equitable • Cons • Hard to compare to PG&E rates • Winners and losers
Rates (cont’d) • Process • Staff recommendation • Public notice • Public vetting/Citizens’ Advisory Committee input and comments • Final determination • Staff Recommendation • Start with straight discount off of PG&E rates • After stable operations are achieved, analyze possible transition to cost-based rates specific to EBCE or stay with PG&E rates with discount
Programs (cont’d) • Other Rates/Programs (cont’d) • Staff recommendation • Adopt most PG&E programs initially • Improve on these programs once EBCE is operational • Program levels will be contingent on flow • Consult Citizens’ Advisory Committee
Next Session – June 21?? • Load Forecast – Who’s In? • Phase-In Strategy – How Many, Who and When? • Resource Portfolio Offerings – How Much Green, Carbon Free and Market? What is Default Option? • Power Supply Purchasing Risk Strategy – How Much Short/Long-Term? How Much Fixed Price vs. Market? • Financial Reserves – How Large, How Quickly Accrued?
